MDxHealth SA — financial distress indicators
Financial-health summary
MDxHealth SA's reported numbers place it in the 'Very weak' financial-health band (distress score 99/100). The main indicators are liabilities exceed assets (negative equity), operating profit does not cover interest and market-implied default probability >20%. Independently, the Ohlson accounting model puts its 1-year failure probability at 95% and the market-implied (Merton) default probability is 73.9%. In its favour: strong current ratio (1.63).
Stress by dimension
Share price — last 12 months
Indicators behind the score
Each red flag shows the evidence from the company’s own filings and the financial or legal principle behind it. Points add to the 0–100 score.
Total liabilities are 1.13× total assets.
Balance-sheet insolvency test: debts exceeding the fair value of assets is the statutory definition of 'insolvent' in 11 U.S.C. §101(32).
Interest coverage (EBIT / interest) is -1.16×.
When EBIT < interest, debt service is funded from cash reserves or new borrowing — the classic precursor to payment default and covenant breach.
Merton distance-to-default -0.64 σ → PD 74%.
Structural (Merton/KMV) model: equity is a call option on assets; low distance-to-default means assets are close to the default point.
Net income negative in 3 of 3 fiscal years.
Persistent losses erode equity and the capacity to absorb shocks.
Debt is 66% of assets while EBITDA is not positive.
With no operating earnings, repayment depends entirely on asset sales or fresh capital.
Operating cash flow negative in 3 of the last 3 years.
A business that cannot fund itself from operations depends on external capital to survive.
Price is -88% from its 52-week high.
Equity markets price distress early; collapses of this size usually reflect fear of wipe-out in a restructuring.
O-score 2.98 → model probability 95%.
Ohlson (1980) logit model of 1-year corporate failure; O > 0 (p > 50%) is the original failure cut-off.
Last price $0.58.
Below the $1 minimum-bid listing standard (Nasdaq Rule 5550(a)(2) / NYSE 802.01C); sustained breach leads to delisting and loss of capital-market access.
0 severe and 1 moderate distress-related headlines in the last 6 months.
Headlines are corroborating evidence only; they are weighted lightly and never drive a flag alone.
Revenue vs net income
Cash generation
Debt vs cash vs equity
✅ Mitigating factors
- Strong current ratio (1.63).
- Revenue still growing (+20% YoY).
📰 Recent news scan
- dilutMDxHealth (MDXH) Stock Sees Fair Value Cut As Analysts Weigh Dilution And ExecutionYahoo Finance · 2026-09-05
- MDxHealth (MDXH) Q2 2026 Earnings Call TranscriptYahoo Finance · 2026-08-21
- MDxHealth SA (MDXH) (Q2 2026) Earnings Call Highlights: Record Sequential Growth and Strategic ...Yahoo Finance · 2026-08-14
- MDxHealth SA (MDXH) Reports Q2 Loss, Beats Revenue EstimatesYahoo Finance · 2026-08-13
- Mdxhealth to Release Second Quarter 2026 Financial Results on August 13Yahoo Finance · 2026-07-30
- Mdxhealth Announces Receipt of Nasdaq Notification Regarding Minimum Bid Price DeficiencyYahoo Finance · 2026-07-02
⚖️ U.S. legal pathway — Title 11, U.S. Code
Which chapter would apply?
- Chapter 11 — reorganisation. Management usually stays in control as debtor-in-possession; the automatic stay (§362) halts collection; a plan must meet the best-interests test (§1129(a)(7)) and the absolute priority rule (§1129(b)) — creditors are paid before shareholders, who are frequently wiped out.
- Chapter 7 — liquidation. A trustee sells assets and distributes proceeds by statutory priority (§§507, 726).
- Subchapter V (“Chapter 5”) is a fast track for small-business debtors under a statutory debt cap, but SEC-reporting companies are excluded (§101(51D)) — so it rarely applies to listed companies.
What typically triggers a filing
- Payment default or covenant breach lenders will not waive; a debt maturity that cannot be refinanced.
- Auditor going-concern doubt (ASC 205-40 / PCAOB AS 2415) — often itself a default trigger in loan agreements.
- Creditors can force a case with an involuntary petition (§303) if debts are not paid as they come due.
- Delisting after sustained sub-$1 prices or equity deficits cuts off equity funding.
Transactions shortly before filing can be clawed back (preferences — 90 days, §547; fraudulent transfers — 2 years, §548).
Frequently asked questions
What do MDxHealth SA's financial-health indicators show?
As of 2026-10-08, MDxHealth SA's public financial data places it in the 'Very weak' band with a distress score of 99/100, driven by liabilities exceed assets (negative equity), operating profit does not cover interest and market-implied default probability >20%. This is a statistical screen of reported numbers — it does not mean the company is insolvent, has defaulted or will enter insolvency proceedings.
What is MDxHealth SA's financial distress score?
99/100 ('Very weak'). Ohlson O-score 2.98 (model 1-year failure probability 95%). Merton distance-to-default -0.64 σ (model default probability 73.9%).
What works in MDxHealth SA's favour?
Strong current ratio (1.63). Revenue still growing (+20% YoY).
How are shareholders treated if a company enters insolvency?
In a Chapter 11 reorganisation the absolute priority rule pays secured lenders, then unsecured creditors, before shareholders — so existing shares are usually cancelled or heavily diluted. In Chapter 7 the company is liquidated and shareholders rarely recover anything.
Other Healthcare & MedTech companies with distress indicators
- Adagio Medical Holdings, Inc. (ADGM)Very weak 100/100
- DataMEDS AI, Inc. (MEDS)Very weak 100/100
- OneMedNet Corporation (ONMD)Very weak 100/100
- Profusa, Inc. (PFSA)Very weak 100/100
- Picard Medical, Inc. (PMI)Very weak 100/100
- Synergy CHC Corp. (SNYR)Very weak 100/100
All Healthcare & MedTech companies with distress indicators →
Methodology
Score = capped sum of rule-based red flags across seven dimensions (liquidity, solvency, profitability, cash flow, sales trend, market signal, news). Ohlson O-score (1980) gives an accounting-based 1-year failure probability; Merton distance-to-default (Bharath & Shumway 2008) gives a market-implied probability. Financial institutions use a capital-based rule set. Recalculated every trading day from the latest filings, prices and news.